Taxpayers face an increase in their National Insurance contributions (NICs) and dividend tax rates from…
As the Coronavirus Job Retention Scheme (CJRS) is slowly wound down by the Government, businesses must adapt their PAYE reporting and payroll function to reflect the required funding contributions.
To help, we have provided a list of key dates for September and the following months to ensure you are prepared for the changes ahead:
- 1 September 2020 – Grants from the Coronavirus Job Retention Scheme (CJRS) tapered down to 70 per cent of a furloughed employee’s usual wages, capped at £2,187.50 a month, with employers required to contribute another 10 per cent, so that furloughed employees continue to receive 80 per cent of their usual wages.
- 1 October 2020 – Grants from the CJRS taper down to 60 per cent of a furloughed employee’s usual wages, capped at £1,875 a month, with employers required to contribute another 20 per cent, so that furloughed employees continue to receive 80 per cent of their usual wages.
- 31 October 2020 – The CJRS closes. Employees can no longer be furloughed after this date.
- 30 November 2020 – The last date for making claims for the CJRS.
The closure of the CJRS is likely to have a significant impact on the employment costs of businesses and so it is important to plan for this now.
Businesses should also remain aware of the Job Retention Bonus, which offers employers £1,000 for every furloughed employee who is brought back, continuously employed and paid at least £520 a month on average from the end of October 2020 to 31 January 2021.